Posted on: 29th Apr, 2010 02:43 pm
hi. i am going through a divorce. my wife is going to keep the house. the mortgage is in my name only. we cannot refinance it over to her because we are going through a bancrupcy as well. it was recommended that i quit claim the house over to her to release me from any liabilities other than the mortgage. it was said that the mortgage is still attached to the house so the quit claim does not affect anything if she defaults (the house is lost and my credit is worse). is this true and are
there any other negative ramifications from my quit claiming. thank you
there any other negative ramifications from my quit claiming. thank you
welcome robertfrosolone,
as you are in bankruptcy, it won't be a good option to sign a quit claim deed and transfer the property to your wife. this can be considered as a fraud and you can be penalized for it. you should also remember, that signing a quit claim deed will not remove you from the mortgage. it will only remove you from the property deed. unless your wife refinances the mortgage, you would be liable for the loan and your credit will be badly affected if she defaults the mortgage payments.
as you are in bankruptcy, it won't be a good option to sign a quit claim deed and transfer the property to your wife. this can be considered as a fraud and you can be penalized for it. you should also remember, that signing a quit claim deed will not remove you from the mortgage. it will only remove you from the property deed. unless your wife refinances the mortgage, you would be liable for the loan and your credit will be badly affected if she defaults the mortgage payments.